ABOUT SIMONS GRIFFIN FINANCIAL

Simons Griffin Financial is an investment management and research firm specializing in portfolio management. Since our inception, we have successfully invested money on behalf of institutional and private investors from around the world. Combining unparalleled experience, comprehensive market research and in-depth industry knowledge, Simons Griffin Financial works with clients to help them consistently achieve their return objectives.

Currently, Simons Griffin Financial manages approximately USD 2 billion in assets, serving clients through its offering of multi-strategy and strategy investments. The firm employs more than one hundred people and has offices throughout Asia Pacific region.

Management Philosophy
Innovation, Flexibility, and Excellence: these are the prevailing principles that underlie the framework for Simons Griffin Financial’s management philosophy. With a commitment to these values, Simons Griffin Financial has emerged as a pioneering firm in the industry offering exceptional solutions for investors.

From the beginning, Simons Griffin Financial’s principal mission has been to accurately address the needs and concerns of its clients. As an investment manager, the firm offers funds that seek to preserve capital and achieve strong risk adjusted returns. As a research company, Simons Griffin Financial selects the best managers in accordance with its macroeconomic views.

Protect our Clients
The reputation of Simons Griffin Financial will grow from client trust. Strong client relationships are based on the following principles: truthfulness, wealth protection, ethical conduct and avoidance of conflicts of interest. We continually seek to improve our ability to communicate the benefits and risks of investing in hedge funds.

Hire Excellent People
Simons Griffin Financial’s most important asset is its people. We are committed to recruiting and retaining a diverse team of the highest quality. Our people must be intelligent, creative, knowledgeable and experienced. Talented people are mobile, so we are building a culture that motivates our people to work, learn, grow and be encouraged to reach their full potential.

Investment Strategy
Simons Griffin Financial’s primary investment objective is to generate long-term capital appreciation and to minimize risk through active asset allocation within various investments. To meet this objective, the firm focuses on three key elements:

Portfolio Manager selection

Portfolio construction

Risk management.

Simons Griffin Financial’s dedication to continuous re-allocation of capital to managers, whose strategies are consistent with the firms’ macroeconomic views, provides clients with unparalleled investment performance. As a result of this approach, Simons Griffin Financial not only outperforms its peers, but also maintains a low correlation to fund of fund indices.

Manager Selection
Simons Griffin Financial’s aim is to select, combine, and monitor the best financial managers for its portfolios in conjunction with the firm’s current macroeconomic views. In order to do so, Simons Griffin Financial’s strategy harnesses both quantitative and qualitative principles.

Simons Griffin Financial’s propriety database facilitates the quantitative screening of financial managers. This process involves the collection of performance and investment strategy data from approximately seven thousand financial advisors. This information is kept recent by daily uploads from industry and proprietary sources. The collected data is filtered across various factors such as risk- return profiles, experience and integrity in order to methodically compare managers to their peers.

This quantitative approach is then supported by the experience and qualitative judgment of the research team. Resultant potential managers are evaluated through conference calls, onsite visits and other due diligence procedures. Unlike other firms, Simons Griffin Financial seeks to truly develop open relationships with underlying managers and participate in their evolution. By establishing such relations, Simons Griffin Financial is able to better identify those managers with clear, disciplined and robust investment processes.

Portfolio Construction
Simons Griffin Financial utilizes a disciplined investment process that starts with understanding the effects of macroeconomic changes on strategies. Informed by extensive research, our Investment Committee sets the top-down investment strategy each month. Portfolios are then re-allocated to capture market opportunities and avoid emerging risks. As a result of this strategic turnover, Simons Griffin Financial has been able to outperform industry peers with lower correlation to fund of hedge fund indices. We believe that our active re-allocation of capital is a primary source of Simons Griffin Financial’s superior returns and a competitive advantage over our peers.

The portfolio construction process is designed to ensure that the allocations to investment strategies and managers are consistent with the portfolio’s risk and return objectives. The objective of this process is to construct a well-diversified portfolio that minimizes common exposures between funds and takes into account the potential effects of an unfavorable or changing market environment using particular stress test assumptions at the fund and portfolio level. Special consideration is given to understanding the aggregate risk exposures in the portfolio, to ensure that portfolio positioning is consistent with the defined top-down view.

Asset Allocation by Investment Strategy
The portfolios are managed dynamically, reallocated monthly towards investment strategies which are positioned to perform well in the current macro environment and away from those strategies which are not expected to perform well. It is possible that one or more underlying investment strategies will be totally excluded from the portfolio at any given time if it is believed that it does not lend itself to adequate returns or has become, or is likely to become, asymmetrically biased to the downside. The investment strategy (or strategies) that are believed to offer the largest opportunities will be offered the largest allocations, within pre-defined strategy allocation limits.

Qualitative Analysis, Quantitative Analysis and Operational Due Diligence
The Research Team conduct in-depth qualitative and quantitative analysis of each manager, with a focus on those managers in strategies currently favored. Further in-depth operational due diligence is conducted on selected managers, independent from the qualitative and quantitative research process.
The members of the Investment Committee are actively involved in the review of managers and are required to meet with all managers prior to investment.

Risk Management
Managing and monitoring risk lies at the heart of what we do. Simons Griffin Financial employs a comprehensive system for managing risk, with our teams conducting qualitative and quantitative analysis on each of our managers. We closely monitor three kinds of risk: market risk, liquidity risk and operational risk at all levels of the portfolio.

Simons Griffin Financial demands a minimum level of transparency from all of our underlying managers. We have a comprehensive understanding of the risks inherent in each hedge fund strategy and manager. This knowledge enables us to maximize performance at acceptable levels of risk.

For each of our portfolios, our Quantitative Analysis & Risk Management Team aggregates our underlying managers’ asset exposures. This allows us to build an accurate picture of risks at the manager, strategy and portfolio levels and allows us to monitor liquidity, leverage and concentrations across different asset classes. Our process also involves independent confirmation of our manager’s positions and risk exposures.

Our Quantitative Analysis & Risk Management Team has developed proprietary portfolio and risk management tools, called PRiMα, to analyze our fund manager data. PRiMα combines the best features of external database providers with additional customized features not covered by alternative solutions. PRiMα helps the Team analyze traditional manager, strategy and portfolio risk factors such as equity and credit beta, as well as factors specific to hedge funds, such as extreme event and other non-normal risks.